European Central Bank chief weighs early exit ahead of French elections

European Central Bank (ECB) President Christine Lagarde is reportedly contemplating stepping down before the end of her eight-year mandate in October 2027, Financial Times reports.

The report suggests that Lagarde has discussed leaving her post ahead of the French presidential elections scheduled for April 2026. An earlier departure would allow French president Emmanuel Macron and German chancellor Friedrich Merz to play a central role in shaping the choice of her successor under the current political balance in Paris and Berlin.

Domestic political considerations in France may be influencing Lagarde’s thinking. In particular, the possibility of a far-right victory in the presidential race could affect the composition of the next ECB leadership, as eurozone governments must collectively agree on the appointment.

Lagarde, a former French finance minister and managing director of the International Monetary Fund, assumed office at the ECB in November 2019, succeeding Mario Draghi. Her term is non-renewable and runs for eight years. As ECB president, she oversees monetary policy across the 20-country eurozone, including key decisions on interest rates and inflation control.

Her tenure has been marked by unprecedented challenges, including the Covid-19 pandemic, the energy crisis triggered by Russia’s invasion of Ukraine, and the ECB’s sharpest monetary tightening cycle in its history as policymakers sought to curb record-high inflation. Markets have recently focused on signals from Frankfurt regarding the pace and timing of potential interest rate cuts.

In response to the reports, the ECB stated that President Lagarde remains “fully focused” on her mandate and has not made any decision regarding an early departure.

By Vafa Guliyeva